It may be time to buy cyber insurance for your business. There are a lot of choices and ways to go about doing this, and all firms start out at the same place — offering reimbursement in case you suffer a data or financial loss. But they end up in different places: Some vendors have insurance policy add-ons to your traditional business liability insurance, while others bundle in protection as part of a computer or smartphone security application.
Let’s take a closer look at your options and why you might want to go with multiple approaches.
Choosing the Right Cyber Insurance Policy
Given that everyone is a target these days, even a small breach can be costly in terms of notifying customers, handling the public relations fallout, paying legal fees and covering other non-IT costs. That is why is makes sense to consider a policy specifically designed for this situation.
With Armor’s Cyber Warranty, for instance, you’ll receive a $100,000 warranty backed by an insurance company in the event of a breach. With this policy, the managed security company shows that it is willing to stand behind its products and cloud-based protection. Of course, you need to deploy Armor’s solutions to be eligible for this coverage, which could be a major turn-off for an organization that works with multiple vendors to protect its data.
Other insurance companies that offer policies include LifeLock Business Solutions and The Hartford. Select coverage from these companies can put you in touch with incident responders, lawyers, privacy program managers and security analysts. Customers also have the option to add breach insurance to a standard general business policy. They can also purchase one or both policies to handle network security liability and first response activities, which may supplement business insurance from another carrier.
Smartphone and Tablet Protection
Another approach companies are taking is to utilize a more typical IT product. We are seeing innovation, for example, with mobile protection.
One such option, Lookout, has apps for both iOS and Android devices. These offer identity theft protection, help in restoring your data and a built-in $1 million dollar insurance policy should your identity be compromised or your phone rooted. The app also sets off a very loud siren to help you locate your device in the event it’s lost, and it backs up your contacts and photos. The company offers three plans ranging from free to $10 a month.
Of course, cyber insurance doesn’t diminish the importance of protecting your endpoints from cyberthreats, but it certainly can help you cover all your bases.